In a letter to Mr. Schawb, Mr. Galvin wrote “I…am calling upon your firm as a good corporate citizen to re-evaluate its position on pre-dispute arbitration clauses that deny investors the choice of a class action lawsuit.” Furthermore, Galvin said he was worried that other firms might follow Schwab’s lead in curtailing such claims.

Schwab has defended its use of class action waivers as being in the best interest of customers. However, Mr. Galvin calls this “disingenuous.” Galvin believes that “class actions are often the only viable method for small investors to seek redress for the wrongful actions of their brokers.”

Also on February 26, 2013, FINRA announced they will appeal the hearing panel’s decision to uphold Charles Schwab & Co. Inc.’s use of arbitration agreements.